Joseph DeLong, previously the CTO at SushiSwap and now CEO of stablecoin startup Colossus, will launch Deepstate, a decentralized exchange leveraging a fully onchain limit order book, on Robinhood Chain next week. Unlike most DEXs that handle order matching offchain to reduce gas fees, Deepstate’s order book will reside entirely within smart contract storage.
Deepstate's Innovative Onchain Architecture
The whitepaper, authored by DeLong and published on GitHub, details an order book design that compresses each resting order into a single 32-byte word. This includes information such as price tick, quantity, rounding correction, and time-priority nonce. Orders are organized in a binary radix tree keyed by price and arrival order, allowing up to 4.3 billion price ticks with a fixed 64-bit depth to keep gas costs predictable regardless of order book size.
This level of onchain matching is rare on EVM-compatible chains, primarily due to the gas expense of reading and writing storage. Most decentralized exchanges rely on offchain order matching or automated market makers that do not require matching. Deepstate’s approach builds on Warp, a matching engine introduced at EthCC 2023 by Joseph Poon and Christopher Jeffrey, pushing limits on what is feasible onchain.
Robinhood Chain Grows Amidst DEX Competition
Robinhood Chain launched its Arbitrum-based mainnet on July 1, attracting prominent DEXs such as Uniswap and 1inch and quickly surpassing competitor Base in daily active users, reaching over 320,000 addresses by July 21. Deepstate enters this crowded ecosystem without revealed details on trading pairs, fees, or a governance token. DeLong’s experience spans founding NFT lending protocol Astaria and a senior role at Kraken, underpinning this new venture.
With Deepstate launching soon, Robinhood Chain continues to expand its decentralized finance offerings amid rapid user growth and partnerships like Lighter enabling stock tokens as collateral for perpetual contracts.
